TAKE COMMAND OF YOUR MONEY WHILE YOUNG- Where to invest your money in 2021

A year ago today, I was going about life trying to understand what exactly having my future secured meant to me. While there are lots of get-rich-quick schemes that are thrown to our faces now and then, the juiciness of what they promise should not make you go into them headfirst. Money has always been a sensitive and quite an intrusive topic, but I believe that it is better to be informed as early as now than to wait till you are 45 to think about investing.

Where to invest your money while young
Source: @wabosha_maxine on Instagram

Gone are the days when people were only allowed to think about investing when they were past the age of 30. Now, you should start thinking about ways of growing money- yes, even if you are still a student. With that said, below are 5 sure ways you can invest your money while you are still young:

1. Money Market Funds

Moneywise with Rina Hicks
Source: @moneywiseke on Instagram

A Money Market Fund (MMF) is a pool of money from different investors that is then invested in various low-risk financial instruments such as Treasury Bonds, Treasury Bills, deposits with banks and Commercial Paper, earning interest. With as low as ksh.500, you can be able to invest your money in an MMF and the advantage is that your money earns interest daily. If you still have money lying idle in your current account, imagine how much money you are losing to bank ledger fees and inflation. As Rina Hicks of Money-wise and Africa’s pocket says, an MMF is a good place to park money as you are thinking about where to invest money. This will insure you from risk and inflation since most MMFs give returns of between 7% and 11%, which is above current inflation rate in Kenya of approximately 5.5%. Since the investment is usually liquid, if you need to withdraw the money, you can get it in 2-3 days, which is convenient.
Since MMFs are low risk, there is little to no chance of losing the money. Before you get baited by the high interest rates that a company is offering, as you consider opening a Money Market Account (MMA), look into things like minimum deposit amount, annual percentage yield (APY), monthly maintenance fees, withdrawal restrictions and other hidden charges that may lower your net yields.
Top MMFs in Kenya that you can consider include;
  • CIC Money Market Fund
  • Sanlam Pesa+ Money Market Fund
  • Nabo Africa Money Market Fund
  • Zimele Money Market Fund
  • Britam Money Market Fund
  • Amana Capital Money Market Fund
  • Cytonn Money Market Fund
  • ICEA Lion Money Market Fund

2. The Stock Market

You can get into this both on a local and international level. For instance, locally, you can be able to buy shares from companies listed on the Nairobi Securities Exchange (NSE). The Foreign Exchange (forex) rate should help you navigate it. The trick here is to buy low and sell high, therefore making a profit. I must state though that with stock, it is not a get-rich-quick scheme. In order to play smart by diversifying risk, most stockbrokers advise one to buy shares from different companies. Please do your due diligence about the companies you want to buy shares from. You also need to be very patient in order to make a profit from shares and think of it as a long-term investment (about 3-5 years).

3. Government Bonds and Bills

Treasury bonds and treasury bills are secure and safe income securities issued by the government. The difference between them is that while treasury bonds are medium to long-term investment option that has a maturity period of 30 years, treasury bills are short-term and have a maturity term of between 4 weeks to one year. This means that when you invest in treasury bonds, you are loaning the government money for a specific period, which usually is the maturity period and with that, they are reimbursing you the money bi-annually for the maturity period, with interest. For investors in T-bonds, the government wires to you a fixed interest payment every 6 months until the bond matures while in T-bills, they are sold at a discount and are auctioned on a weekly basis.
Common examples of Government bonds include fixed coupon bonds, infrastructure bonds and treasury bonds.
Who should invest in bonds?
Generally, T-bonds and T-bills are a good investment option for someone who wants a no-risk, tax-free and no-cost option of growing that money. Naturally, as you grow older, you are advised to invest less in stocks and more in bonds in order to keep your money more secure as you head towards retirement. In short, it is for the risk-averse investor, especially if you compare it to investing in stock.
Steps involved in investing in bonds
After opening a CDS account, decide how you want to invest, fill in and submit an application form, get the auction results, pay then wait for maturity proceeds.


Savings and Credit Co-operatives (SACCOs) is a group of shareholders with a similar interest that come together for a common goal. The members then get to buy shares, earn dividends, earn interest from the saved amount and borrow money 3 times the invested amount at a relatively lower rate. One important thing to note is to join a SACCO that is tailored to your needs.

5. Cryptocurrency

Crypto is an unsecured form of digital currency that has in the recent past had everyone talking about it, thanks to Elon Musk who has been the market-mover here for a hot minute. Now, crypto does require you to do your research and invest what you will not feel pain losing. With Bitcoin prices plummeting, there are lots of people who have lost their minds. However, this can be a very profitable investment option if you are very patient with it. It also needs you to be enlightened on how the different cryptocurrencies are moving because here, every second counts.
The common cryptocurrency options available include Bitcoin (BTC), Dogecoin (DOGE), Ethereum (ETH), Polkadot (DOT), Binance Coin (BNB), Tether (USDT), Cardano (ADA) and Ripple (XRP).
Raisa Ichalut
Raisa Ichalut is a wellness- nichéd Content Curator who seeks to use this website as a tool that informs, empowers, and enlightens people on topics around self- discovery, development, and love, general wellness, positivism, energy, healing, and mindfulness.

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